Verifone FYQ1 Beats; Q2 View in Line; Raises Year View

By Tiernan Ray

Shares of payment processing technology vendor Verifone (PAY) are up 62 cents, or 1.3%, at $47.17 in late trading after the firm reportedfiscal Q1 revenue and earnings per share ahead of consensus, forecast this quarter’s results in line, and raised its full-year forecast.

Revenue in the three months ended in January rose to $420 million, yielding EPS of 38 cents, ahead of the consensus $418 million and 52 cents, excluding some costs.

CEO Douglas Bergeron remarked that the company was delighted with our strong start to fiscal 2012″ and said the company’s “Point” division was “performing ahead of plan.”

“Their ‘payment-as-a-service’ model is positioned to serve as the new North American paradigm for quickly deploying and maintaining advanced EMV software and mobile wallet software updates for Visa, Isis, Google, PayPal and others,” Bergeron remarked.

For the current quarter, the company sees revenue in a range of $465 million to $4570 million, and EPS of 59 cents to 60 cents. Analysts have been modeling $68 .6 million and 60 cents.

For the full year, the company sees revenue of $1.9 billion to $1.93 billion, and EPS of $2.60 to $2.66. That his higher than the company’s prior forecast, from December, for $1.9 billion to $1.92 billion and $2.53 to $2.60 per share. It is also higher than the $1.91 billion and $2.59 the Street has been modeling.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.